1. MCT #4: TOMORROW (part 1) Thursday (part 2)
AP ECONOMICS: November 28
A.P. Economics Learning Target: In order to understand how an open economy interacts with the rest of the world, I will understand how a country’s transactions with the rest of the world are recorded in balance of payments accounts. I will know I have it when I can determine: (1) when a country’s balance of trade yields a surplus or deficit; (2) what is recorded in a country’s current account; (3) what is recorded in a country’s financial account; and (4) how the Fed facilitates foreign trade by buying and selling currency.
--Balance of Payments: Worksheet 41.1 (HO)
--Rule: --a current account deficit means a financial account surplus
--a financial account deficit means a current account surplus --imbalances taken care of by central bank (Fed) accommodation -BOP surplus: Fed takes in the excess foreign currency and pays for it in dollars -BOP deficit: Fed takes in dollars and pays for the dollars with its foreign currency reserves
--discuss FRQ #6 and #7 Assignment: work on MCT #4 practice questions (HO from earlier);
watch videos at Mr. Clifford’s web site (AC-DC Economics)
MCT #4: TOMORROW (part 1) Thursday (part 2)